Property Rights Explained


Hi there! It’s Julie here from JJC Capital Partners. We are the equity release specialist for ex-pats in Spain.

JJC Capital partners are the only English speaking Equity Release firm in Spain operating all over the country and the islands.

We have many strings to our bow, apart from our Bank of Spain authorization for lending in Spain. We also bring legal, taxation and commercial expertise to each and every one of our deals.Today I wanted to talk to you about the two property rights that make up the full ownership of the property that you own here in Spain.

There’s the bare ownership of the property, which is the virtual ownership. This is what the seller of the property gets. It is a fully legal clause whereby a person can invest in or buy a property,  register their name as the owner on the title deeds of the property, but it does not allow the investor to live in the property or use it.

Why would they do it so? The investor is getting a fantastic deal; they have a tenant who will mind the property and take care of it (literally) as if it was theirs. They don’t pay an income tax on the rent because it has already been deducted from the price.

The seller of an equity release property; what is in it for you?

And then there’s the usufruct, which is the right to live and remain staying in your property for the rest of your life. This is what the seller of the property gets in exchange for giving the investor such an attractive discount.

As the seller, you accept this condition, even though you don’t own the bare ownership side of it. This is what happens in an equity release transaction.

It allows you to sell the bare ownership of your property in exchange for a lump sum payment, a percentage of the current market value of your house. The price you get and the terms depend on the property, your age and health, the location and a number of other factors that are perfectly understandable.

The deal must be attractive to the investor too, just as it must work for you, the owner.

You can achieve your equity release in two different ways; Either a lump sum payment, or if you prefer extra monthly payments. You use the money as you see fit, perhaps to enhance your income and to allow you to have a better lifestyle while you’re living in the home that you love in Spain.

The cost of living in Spain is rising as we all know, especially with Brexit and Covid considerations.

Effectively, you sell the bare ownership side, but remain living in the property.

For more information and a more detailed analysis of your personal situation, why not contact us right now? We have investors waiting.

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